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    These 28 smallcaps steal limelight, give double-digit weekly returns

    Synopsis

    Similarly in the US, consumer price inflation in December had fallen for the first time since May 2020. Buoyed by these encouraging data points, indices on Friday ended in the green, which helped them clock marginal gains for the week.

    These 28 smallcaps steal limelight, give double-digit weekly returnsiStock
    In a week when the benchmark indices remained largely range-bound, smallcap stocks outperformed by a wide margin amid strong buying by domestic institutional investors.

    At least 28 smallcap stocks gave double-digit weekly returns, when the BSE Sensex and NSE Nifty50 gained about 0.5% each.

    Chennai Petroleum Corp, Mahindra CIE Automotive, Tourism Finance Corp of India, Multi Commodity Exchange of India, Marksans Pharma, Lloyds Steel Industries, Edelweiss Financial Services, Kolte-Patil Developers, Rategain Travel Technologies, Transformers & Rectifiers, Sterling Tools, and BCL Industries are among the 28 stocks, and have gained 10-34% in the week gone by.



    About 28 smallcap stocks tested 52-week highs last week. These include names like Mahindra CIE Automotive, Transformers & Rectifiers, Marksans Pharma, Care Ratings, PNB Housing Finance, PG Electroplast, Anand Rathi Wealth, PNC Infratech, Godfrey Phillips, TVS Srichakra, and Nelcast.

    Benchmark indices remained weak in the early part of last week as investors were cautious ahead of the key inflation data in the US and India.

    The data released on Thursday showed that inflation cooled off to a 12-month low of 5.72% in December, which led to hopes that the rate hike cycle of the Reserve Bank of India may not last long.

    Similarly in the US, consumer price inflation in December had fallen for the first time since May 2020. Buoyed by these encouraging data points, indices on Friday ended in the green, which helped them clock marginal gains for the week.

    Midcap and smallcap stocks lagged largecaps in 2022 amid volatility in the market. But many market experts see the broader market outperforming in 2023.

    Mid- and small-cap stocks have seen flat to negative returns in 2022, which will reverse this year with interest rates peaking and operating margins revival leading to good earnings growth, said Sushant Bhansali, chief executive officer of Ambit Asset Management.

    Among small-cap stocks that are expected to do well in the week ahead is Edelweiss Financial Services. “We are witnessing a major range breakout with exceptional volumes for the past three trading sessions. The stock is poised for a faster upside,” said Mehul Kothari, AVP - technical research at Anand Rathi Shares & Stocks.

    Kothari recommended buying the stock near Rs 73 for a target of Rs 83 while maintaining stop loss at Rs 68. On Friday, the stock ended 6% higher at Rs 73.05 on the NSE.

    (Data inputs from Ritesh Presswala)

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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